AtriCure Inc (ATRC) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article:

  • Total Revenue: $124 million, 14% growth year-over-year.

  • Adjusted EBITDA: $9 million, over 200% improvement from Q1 2024.

  • Appendage Management Revenue Growth: 19% globally, with 23% growth in open AtriClip devices.

  • Open Ablation Revenue: $33.3 million, 13.7% increase from Q1 2024.

  • US Revenue: $101.1 million, 12.1% increase from Q1 2024.

  • International Revenue: $22.5 million, 20.8% increase on a reported basis.

  • Gross Margin: 74.9%, up 27 basis points from Q1 2024.

  • Operating Expenses: $98.6 million, 6.9% increase from Q1 2024.

  • Loss Per Share: $0.14, compared to $0.28 in Q1 2024.

  • Cash and Investments: Approximately $100 million at the end of Q1 2025.

  • Pain Management Revenue Growth: 39% in Q1 2025.

  • Minimally Invasive Ablation Sales: $8.5 million, 31% decline from Q1 2024.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • AtriCure Inc (NASDAQ:ATRC) reported a 14% growth in total revenue for the first quarter, reaching $124 million, driven by strong performance in pain management and appendage management franchises.

  • The company achieved a significant improvement in profitability, with adjusted EBITDA increasing by more than 200% from the first quarter of 2024, reaching $9 million.

  • AtriCure Inc (NASDAQ:ATRC) received 510(k) clearance for its minimally invasive AtriClip PRO-Mini device, which is 60% smaller than the next lowest-profile device, enhancing visualization and precise placement.

  • The company's Cryo Nerve Block therapy for pain management saw a 39% growth in the first quarter, with the cryoSPHERE MAX and cryoSPHERE+ probes driving broader use and interest from new accounts.

  • AtriCure Inc (NASDAQ:ATRC) is expanding its market with the recent FDA 510(k) clearance of the cryoXT probe, designed for extremity amputations, offering an opioid-free solution for phantom and residual limb pain.

Negative Points

  • Minimally invasive ablation sales declined by approximately 31% over the first quarter of 2024, due to pressure from the adoption of PFA catheters.

  • The company continues to face downward pressure in the US market for Hybrid AF therapy, despite strong growth in Europe.

  • Operating expenses increased by 6.9% from the first quarter of 2024, driven by continued enrollment in the LeAAPS clinical trial and increased headcount for product development.

  • Despite strong performance, AtriCure Inc (NASDAQ:ATRC) reported a loss per share of $0.14 in the first quarter of 2025, compared to a loss per share of $0.28 in the first quarter of 2024.

  • The company anticipates continued pressure on its minimally invasive ablation sales due to the widespread adoption of PFA, impacting near-term growth.